A woman walks past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange in Hong Kong Tuesday, Jan. 12, 2021. Asian stocks advanced Tuesday as investors watched for details of U.S. President-elect Joe Biden's promised economic stimulus plan. (AP Photo/Vincent Yu)
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Asian stocks mixed as markets watch for Biden stimulus plan

8 Comments
By JOE McDONALD

Asian stocks advanced Tuesday as investors watched for details of President-elect Joe Biden's promised economic stimulus plan.

Shanghai, Tokyo and Hong Kong, which account for the bulk of the region's stock value, rose. Seoul, Sydney and Southeast Asian markets retreated.

Overnight, Wall Street declined following a string of record-setting gains.

Investors were encouraged by U.S. election results that showed Biden's Democratic Party will control the Senate, reducing potential opposition to his plans. Biden promised to announce details this week of the plan he will propose after he takes office Jan. 20.

“Investors found optimism in the prospect of further fiscal stimulus,” said Cesar Perez Ruiz of Pictet Wealth Management in a report. With the Senate in Democratic hands, “President-elect Biden has a better chance of pushing through his agenda and delivering sorely-needed stimulus and support.”

No major potentially market-moving events were on the calendar Tuesday in Asia.

The Shanghai Composite Index rose 1.4% to 3,580.95 and the Nikkei 225 in Tokyo added 0.1% to 28,164.34. The Hang Seng in Hong Kong gained 0.8% to 28,117.37.

The Kospi in Seoul shed 0.8% to 3,125.72 while the S&P-ASX 200 in Sydney sank 0.3% to 6,679.10.

India's Sensex opened down 0.1% at 49,214.12. New Zealand and Southeast Asian markets retreated.

Overnight, Wall Street's benchmark S&P 500 index declined 0.7% to 3,799.61, breaking a four-day streak of gains. The Dow Jones Industrial Average retreated 0.3% to 31,008.69. The Nasdaq composite slid 1.3% to 13,036.43.

U.S. markets shrugged off the attack on the Capitol in Washington by Trump supporters who were trying to block final confirmation of Biden's victory.

“I believe stocks were looking ahead to better days, expecting a robust economic recovery once there is broad distribution of vaccines,” said Kristina Hooper of Invesco in a report.

The market's record-setting run means stocks and other investments are even more expensive, leaving critics to say they’ve gone too high.

Stocks in the S&P 500 are trading at roughly 29 times their earnings, well above their average of 18 times over the past decade.

The gains come despite negative U.S. economic news. Employers cut more jobs last month than they added for the first time since the start of the pandemic last spring.

The United States and other countries also face potentially more contagious types of the coronavirus. That is prompting governments to reimpose restrictions that disrupt travel and commerce.

Democrats are pushing for the removal of Trump, who has less than two weeks left in his term, after he helped to incite loyalists who stormed the Capitol.

Shares of Twitter slid 6.4% for one of the largest losses in the S&P 500 after it banned Trump from his account and his 89 million followers. Twitter cited “the risk of further incitement of violence,” but the move has drawn a lot of anger from conservatives who may abandon the service and ask for more regulatory scrutiny of the company. Facebook fell 4% after it suspended Trump’s accounts.

In energy markets, benchmark U.S. crude gained 13 cents to $52.38 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 1 cent on Monday to $52.25. Brent crude, used to price international oils, advanced 9 cents to $55.75 per barrel in London. It fell 33 cents the previous session to $55.66 a barrel.

The dollar rose to 104.22 yen from Monday's 104.16. The euro fell to $1.2154 from $1.2163.

© Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

©2021 GPlusMedia Inc.


8 Comments
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"economic stimulus plan". = borrow more, print more, shovel more to his cronies and special interest groups.

One reason the markets all going crazy and speculative bubbles in Bitcoin and the like is purely due to this egregious money printing and slack fiscal policy.

Wonder if he will keep any of his promises around reversing tax cuts and the like.

5 ( +5 / -0 )

More stimulus? Something like 30% of all USD in existence has already been created in the past 12 months, I'm not joking...sadly

This is pure insanity

3 ( +3 / -0 )

I hope Biden taxes Trump into the poorhouse.

0 ( +1 / -1 )

Biden? Nothing to expect, I am much more interested in a Suga stimulus plan....lol

2 ( +2 / -0 )

Suga will surprise all of us. He is the man with a plan. Get ready for Suganomics.

1 ( +1 / -0 )

World economists are still working out the basics. What do u think politicians can do ???.

0 ( +0 / -0 )

Just like the virus is wrecking havoc on peoples lives, just wait until the second quarter of this year. We will really see where, jobs and peoples finances are headed. All of this is speculative, the big wrecking ball hasn't dropped yet. Its coming!

-1 ( +0 / -1 )

Tuition at state colleges is around $10,000 for state residents but when somebody goes out of state it jumps to $26,000. Many, many American, of their own free will, scraped and saved for years to send their kid who to a state college and many, many students were able to work through high school and summer jobs so that with the support of their parents, they graduated from a state college, debt free.

Many other Americans decided to go to a state college on the other side of the country and took on quite a bit of debt, of their own free will, to pay for it.

One thing Biden id promising is to pay off $10,000 of student debt to people who made the bad decision to take on debt to attend a state college on the other side of the country, not because they got a better education, but because they wanted to.

That's your "stimulus package."

0 ( +0 / -0 )

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